Brief⁽¹⁾

H.B. 2296 amends the contracting trustee statute in the banking code. The bill amends the definition of the term "Contracting trustee" to clarify that state banks and trust companies may contract away their fiduciary responsibilities to a trustee that may be, not only a bank affiliate of a holding company, regardless of the location of the affiliate, but a trust company affiliate of a holding company as well.

Background

H.B. 2296 was requested by the Acting State Bank Commissioner who explained that it was never the intention of the Commissioner to exclude a trust company affiliate of a bank holding company from being able to serve as a contracting trustee.

The bill would have no impact for state government.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.